Agriculture
Giwa , Kachia
Development
Ministry Of Agriculture
07-04-2022 22:26:16
The project will enable local value-added services to farm produce in the state thereby increasing and stabilizing the prices farmers can obtain for their produce. It will afford opportunity to provide bulk products at a single centre and reduce the hardship farmers face in processing their produce, especially ginger.
The CADP operations and maintenance of three (3) grains aggregation centres for maize and ginger. Each facility has a 75,000 MT warehouse capacity and a 15,000MT/day processing capacity. Construction of the three grains aggregation centres was a project developed as part of the Commercial Agriculture Development Project (CADP), a World-Bank funded program in Nigeria. The facilities are about 95% complete and the total project cost is about US$ 2.44 million.
To unlock full utilization of the centres, additional construction works or rehabilitation of existing infrastructure may be required. This can include buildings and roads, power supply, water supply, and other civil works. Capital may also be required to provide equipment, finalize the installation or replace damaged existing ones before the centres could become operational. This may include storage handling and processing equipment, storage bins, vehicles, tools, and agro-processing equipment.
The facilities are expected to operate on Warehouse Receipt (WR) system. The system enables farmers to deposit storable goods (usually grains) in exchange for a WR. The WR is issued to the named depositor (who may be a farmer, farmer group, processor or trader) as evidence that he or she has deposited a specified commodity, of stated quantity and quality, at the centre. The holder of the receipt may pledge it to a lender (with the stored commodity being the collateral for a loan) or transfer it to a buyer (by way of a sale). The warehouse operator or collateral manager, who has custody of the stocks, guarantees delivery against the receipt, and should be able to make good any value lost through theft, fire or other catastrophes.
Other operational aspects of the project are company establishment, sales and distribution, employment, and general office activities.
A private operator will be granted a concession to Operate and Maintain (may include Rehabilitation) an individual or combination of all three facilities.
Information will be published as soon as it is available.
Facilities would be operated as a concession arrangement where revenue will come from sales of raw or processed maize and/or ginger by the operator and the government earns a periodic concession fee.
The project does not involve government payments or subsidies, hence there would be no contingent liability on the government.
There is basis to believe that there is sufficient market capacity and to expect that the private sector will be interested in the project. The Kaduna State PPP Project Prioritization Pipeline noted that two private sector groups have shown interest in operating the facilities thereby indicating market appetite for the project.
Opportunities for mutual prosperity between Nigeria and the UK from the project includes exportation of raw or finished produce.
Information will be published as soon as it is available.
Information will be published as soon as it is available.
Information will be published as soon as it is available.